Division 2 Oil and Gas Well Drilling and Production

No person shall engage in oil and gas production activities without first obtaining a well permit. Applications for a well permit shall not be considered by the town without:

An approved CUP for the location of the drill site where the well is proposed to be located; and

An approved site plan.

Well permit applications shall not be reviewed by the town staff prior to the submission of the required fees associated with these activities. A separate well permit and well permit fee is required for each well.

Pipeline permit.

No person shall engage in oil and gas pipeline activities without first obtaining a pipeline permit. Applications for a pipeline permit shall not be considered by the town without an approved site plan. Pipeline permits shall not be reviewed by the town staff prior to the submission of the required fees associated with pipeline activities. Permit application requirements for pipelines are set forth in division 3 of this article.

§ 14.04.032 Permit application requirements.

Seismic survey permit.

No person shall engage in seismic surveying activities without first obtaining a seismic survey permit. A separate seismic survey permit application and fee shall be submitted to the town for each seismic survey that the person wishes to execute. The permit application requirements are set forth in section 14.04.041 of this article.

(Ordinance 2011-12-6D, sec. 2.03, adopted 12/6/11)

In order to engage in any oil or gas production activities within the town’s corporate limits, potential operators must submit the appropriate permit application(s) to the planning director for each drill site, well, pipeline and/or seismic survey that the operator is proposing. A well permit may not be granted unless the well is to be located on a drill site previously approved by the town under this article, or is granted in conjunction with a drill site conditional use permit for the drill site proposed for the well. A new well permit is required to rework a well for the purposes of redrilling, deepening, or converting the well to a depth not indicated on the original well permit. An existing well permit shall not give an operator the authority to reenter an abandoned well. To reenter, the operator must submit a new well permit application in accordance with the requirements of this article.

Each well permit application shall contain and/or, as applicable, be accompanied by the following:

The date of the application.

An accurate legal description by metes and bounds - or if recorded by plat, then by subdivision, block and lot numbers - of:

The property to be used for the drill site where the well is proposed to be located; and

The applicable parcel, the production unit and name of the geologic formation as designated by the railroad commission.

A site plan of the proposed drill site that meets the requirements outlined in section 14.04.033, and that delineates the precise location of the proposed well and pad site on the drill site.

The following information regarding the proposed well(s):

The exact and correct acreage and number of wells in the current application.

Whether the application is for the first well to be drilled on the drill site.

If gas produces in paying quantities, the total number of wells planned for the drill site, and their proposed locations, including pad site(s) and bore path(s).

The total number and names of any currently permitted wells on the drill site.

The total number and names of any currently operating wells on the drill site.

The total number and names of any abandoned wells on the drill site.

A transportation plan showing proposed transportation routes and roads, both public and private, to be used for transporting equipment, chemicals, or waste products used or produced by the operations.

Evidence of permission from the surface owners for the operator to access the drill site.

Agreement signed by the applicant, agreeing that as a condition for the issuance of a permit under this article, the roads identified in item (b)(5) of this section are the only roads that the operator and its employees, agents, and subcontractors may use unless an amended route plan is filed with and approved by the town or there are circumstances requiring evacuation using an alternate route due to an imminent threat of bodily injury or death.

A list that includes the names and addresses of all trucking contractors or employees of the operator who will travel to and from the drill site and operation site and evidence of each driver’s required registrations, licenses, and insurance coverage.

Proposed well name.

Surface owner name(s) and address(es) of the lease property.

(11)

Mineral lessee’s name and address, and if the lessee is a corporation, the state of incorporation, and if the applicant is a partnership, the names and addresses of the general partners.

(12)

If the applicant is not the mineral lessee, the applicant’s name and address and if the applicant is a corporation, the state of incorporation, and if the applicant is a partnership, the names and addresses of the general partners.

(13)

Name and physical and mailing address of the individual agent designated by the applicant to receive notice.

(14)

Names, physical addresses, and local telephone numbers of two representatives of the applicant who are authorized and responsible to ensure compliance with all conditions of the well permit, this article and other applicable regulations, together with a sworn statement from each representative that he or she agrees to be responsible for ensuring that the operator’s employees, contractors, and subcontractors comply with all conditions of the well permit, this article, and other applicable laws and regulations.

(15)

Location and description of all improvements and structures within one thousand (1,000) feet of the drill site boundary.

(16)

Location of any freshwater wells that are within one thousand feet (1000') of the drill site boundary.

(17)

Owner name and address of each parcel of property within one thousand feet (1,000') of the boundaries of the proposed drill site.

(18)

A circulation plan showing existing and proposed internal drives and circulation.

(19)

A sign plan which meets all requirements of the railroad commission and town regulations relating to signs.

(20)

A noise management plan.

(21)

A continuous air quality monitoring plan.

(22)

A continuous water quality monitoring plan.

(23)

A screening and fencing plan detailing compliance with all screening and site security requirements required by town ordinance. Plan should include specifications for all fencing, walls, and gates at the drill site and it should include a proposed schedule detailing the timing of installation for all fencing, walls, and gates.

(24)

A landscape plan prepared by a state-licensed landscape architect detailing the appropriate type of landscaping and irrigation for the site; measures to be taken to adequately irrigate all landscaping, including indicating the water source for irrigation, and the proposed efforts to replace dead or dying screening vegetation. The plan shall include a proposed schedule detailing the timing of installation for all landscaping and irrigation requirements.

(25)

A fully executed third-party landscape maintenance agreement detailing the frequency and scope of the landscaping services to be provided.

(26)

A tree preservation plan that meets the requirements of town regulations relating to tree preservation.

(27)

Copies of all reports required by the commission and TCEQ.

(28)

A signed road repair agreement in a form approved by the town.

(29)

A site security plan that includes the location or proposed location of all security cameras and the security measures taken at all points of entry.

(30)

If applicable, the names and addresses of owners within the setback distance prescribed by this article for a well bore, tanks, or other equipment and evidence of their consent to the proposed location of the same.

(31)

A dust mitigation plan detailing measures to be implemented to mitigate and suppress dust generated at the drill site and the private vehicle access route, including a mud shaker for vehicles exiting the site, or, if a dust mitigation plan has already been approved by the town as part of a previous application for the drill site, a copy of the approved plan.

(32)

A description of the water source to be used during drilling, the estimated quantity of water to be used, and evidence of permits or approvals for such water source and the method of transporting.

(33)

All material safety data sheets (MSDS’s) detailing the hazardous and nonhazardous liquids/materials that will be located, stored, transported, and/or used at the drill site and operation site shall be provided to the fire inspector.

(34)

A description of all chemicals to be used in drilling and operation, including a description of the substances contained in the fracturing fluid to be utilized.

(35)

A waste management plan that addresses management of human, solid, and drilling production waste, including the method to be used for removal of produced water.

(36)

A description of all fuel and power sources, including but not limited to steam generation, to be used at the proposed drill site and operation site, including but not limited to all public utilities needed during drilling and operation.

(37)

A copy of any previously approved permit issued by the town that relates to the drill site or operation site together with any attachments, site plans, and survey plats that are applicable to the drill site or operation site.

(38)

A copy of the stormwater pollution prevention plan as required by the environmental protection agency. Copies of the notice of intent shall be submitted to the town engineer and planning director ten business days prior to the commencement of any on-site activity.

(39)

A copy of the erosion control plan required by the town.

(40)

A copy of the determination by the state commission on environmental quality of the depth of useable quality groundwater.

(41)

Evidence of satisfaction of insurance and financial security requirements of this article.

(42)

All required application, well permit fees, and any other required fees.

(43)

The proposed gathering pipeline route from the well to the transmission pipeline, to include:

Evidence of easements to cross private property along the route; and

An approved pipeline license from the town to utilize any public right-of-way shown on the route.

(44)

The name, address and phone number of the well owner(s) and of the well operator(s) and the name and address of the pipeline owner(s) and of the pipeline operator(s) of any pipeline that connects to the well.

(45)

An emergency response plan.

(46)

A detailed evacuation plan addressing the evacuation strategy for a public or private school, hospital, assisted living and/or nursing care facility, or daycare facility if any such facility will be located within one-half (1/2) mile (2,640') of the boundary of the proposed drill site and operation site; and a detailed list of all persons to be notified in the event of an evacuation, including, without limitation, all persons residing within one-half (1/2) mile (2,640') of the boundary of the proposed drill site and operation site. The plan should address the methods that the operator will employ to notify the town in a timely manner that an event requiring evacuation has occurred, as well as the methods that will be employed to maintain a current, up-to-date, notification list.

(47)

A hazardous materials management plan meeting the requirements of the fire code, or, if a plan has already been approved for the drill site and operation site, a copy of the applicable hazardous materials management plan if previously approved.

(48)

A lighting plan, depicting all nighttime lighting to be used or occurring on the drill site and operation site and the measures to be taken to reduce glare on the properties adjacent to the site. The plan should include a photometric plan, indicating the type and color of light(s) to be used and demonstrate compliance with all Federal Aviation Administration requirements and town regulations relating to dark skies requirements.

(49)

A leak detection and compliance plan to ensure that all site activities and equipment are in compliance with applicable rules and regulations. The plan shall address the best management practices outlined by the environmental protection agency’s (EPA) leak detection and repair (LDAR) program - best practice pamphlet. This includes addressing regulatory requirements and facility-specific procedures, data to be collected, personnel and description of their roles, training; audits; contractor accountability; internal leak definition; frequency of monitoring; repairing of leaking components; electronic monitoring and storage of LDAR data; quality assurance and control that EPA method 21 procedures are being followed; verification that LDAR personnel are monitoring the correct components in the proper manner; calibration/calibration drift assessment; records maintenance; and the evaluation of potential impact of leaks to air, soil, surface water, and groundwater. Quarterly reporting of the monitoring results to the town engineer and planning director is required with all laboratory data sheets, field logs, data summaries, and actions taken in response to problems identified during the prior quarter.

(50)

A green completion plan that addresses equipment, techniques, practices, and programs that will be implemented to reduce emissions.

(51)

A gas dispersion model and a risk assessment study that includes a blowout contingency assessment and a blast study conducted by an unaffiliated third party with a licensed engineer on staff.

(52)

A cement casing program. The program must demonstrate adherence to all railroad commission regulations and shall include a proposed schedule of work, a summary of other best management practices that the operator will employ, coordinate the on-site inspection of casing installation by the inspector, and authorize access to all relevant operator-maintained reports.

(53)

A traffic impact analysis study performed by a professionally licensed traffic engineer, which includes but is not limited to, proposed truck routes, types and weights of trucks and vehicles accessing the drill site, hours of the day that truck and vehicle traffic will be entering and leaving the site, days of the week that truck and vehicle traffic will be entering and leaving the site, turning movements associated with truck and vehicle traffic, proposed access points and proposed traffic-control devices.

(54)

Colored renderings of the site as viewed from all adjacent rights-of-way showing site elevations, screening walls, and other landscaping and screening at the site.

(55)

A line of site analysis indicating that permanent equipment on the site such as tanks, dehydrators, separators, vapor recovery systems, and Christmas trees will be screened and not visible from adjacent rights-of-way or residential.

(56)

A list of green compounds that will be employed in the fracturing/drilling process.

(57)

A supervisory control and data acquisition (SCADA) plan. The plan shall outline how data from the drill site will be continuously collected in a real-time manner and how this data is monitored. Data shall be collected at every stage of the oil or gas drilling and production process. The plan shall address how the SCADA system will control factors such as leakage, fire, emergency shut-down, oil or gas flow rate, and accumulated flow, line pressure, detection and control, well-head pressure, pump status, tank level, and other critical factors defined by the town’s consultant. In addition, the plan should define the equipment, sensors, hardware, communication interfaces (radio, wire, fiber optic and microwave), and electro-mechanical devices that will be employed and how these devices will function during an emergency situation.

(58)

A soil sampling plan that addresses the parameters for testing requirements.

(59)

A statement, under oath, signed by the applicant, or the applicant’s agent acknowledging that the information submitted with the application is true and correct.

(60)

A true and correct copy of any lease associated with the proposed operating site.

(Ordinance 2011-12-6D, sec. 2.03, adopted 12/6/11)

§ 14.04.033 Site plan requirements.

For each permit required under this article, a site plan must be submitted to the town planning department on a 24" x 36" map sheet and must contain the following elements:

Title block.

A title block containing proposed name of the gas well(s), acres in the lease, survey, and jurisdiction.

Surveyor name.

The name, address, and phone number of the surveyor responsible for the site plan. The site plan must bear the seal of a Texas Registered Professional Land Surveyor.

Owner/operator information.

The names and addresses of the current owner of record, mineral lessee, mineral owner, and well operator.

Date.

The date the site plan was prepared.

Scale and north arrow.

The site plan must be prepared at a numerical scale no greater than one inch (1") equals one hundred feet (100'). The site plan must also include a graphic symbol depicting a north-seeking arrow indicating approximate true north.

Location map.

A location map depicting the location of the drill site, including but not limited to a precise delineation of the drill site boundaries, in relation to adjacent streets, highways, and landmarks.

Metes and bounds legal description.

A written metes and bounds description of the land encompassed by the drill site or proposed operation site and the tract of property upon which the proposed drill site is to be located if the boundary lines of such tract depart to any extent from the boundary lines of the drill site or proposed drill site.

Boundary lines.

Boundary lines shall be precisely delineated in a scaled drawing for:

Each existing or proposed pad site;

Each existing or proposed drill site;

The tract of property upon which a drill site is located or proposed to be located if the boundary lines of such tract of property depart to any extent from the boundary lines of the drill site or proposed drill site; and

Adjacent tracts of property.

(Note: if the boundary lines of existing or proposed pad site(s), existing or proposed drill site(s) or the tract of property upon which is located any such existing or proposed site are either identical or share one or more common boundary lines, then the drawing shall clearly delineate and describe same with appropriate labeling or explanation).

Lease area.

The lease area or proposed lease area designated for drilling activities expressed in square feet shall be shown on the site plan.

One hundred (100) year floodplain.

The location of the one hundred (100) year floodplain must be clearly depicted and labeled on the site plan.

(11)

Location of natural features.

The location of vegetation, creeks, and other topographic features must be clearly depicted and labeled on the site plan.

(12)

Adjacent properties.

All property lines, streets and easements on lands adjacent to the drill site and extending one thousand feet (1,000') from the drill site shall be shown with the names of the owners of such properties as shown on the most current tax assessor’s files and, in the case of any easements, the names of the holder(s)/owner(s) of the dominant estate.

(13)

Streets/street rights-of-way.

The locations and width of all public and private streets as well as all street rights-of-way within one thousand feet (1,000') of the drill site shall be depicted on the site plan. The distance between the edge of street rights-of-way nearest to the drill site and the drill site boundary must be clearly delineated on the site plan.

(14)

Easements.

The location and dimension of all existing and future easements proposed by the applicant shall be shown on the site plan drawing indicating whether such easement is for any specific purpose.

(15)

Permanent structures.

The location and general outline of any existing permanent structures, parking lots, driveways, freshwater wells, drainage facilities, and other significant structures within one thousand feet (1,000') of the drill site. The distance between these structures and the nearest point of the drill site boundary must be clearly delineated on the site plan.

(16)

Proposed structures.

The height, size, bulk and location of all improvements and equipment, including the location of the proposed well(s) and other facilities, including, but not limited to, tanks, compressors, separators, storage sheds, and signage. The distance between the nearest exterior surface of such structures and the point on the property line of any protected use areas nearest such structures that are within a distance of one thousand feet (1,000') must be clearly delineated on the site plan.

(17)

Fuel and power sources.

The proposed location of all fuel and power sources, including but not limited to steam generation.

(18)

Proposed pipelines.

The location of all proposed underground pipelines and the point of connection with an off-site pipeline or a statement that there is no off-site pipeline.

(19)

Site screening.

The location or proposed location of all temporary and permanent screening fencing and landscaping.

(20)

Street names.

All street names shall be depicted on the site plan.

(21)

Ingress/egress points.

All ingress and egress points to the drill site and operation site shall be clearly depicted on the site plan.

(Ordinance 2011-12-6D, sec. 2.03, adopted 12/6/11)

§ 14.04.034 Separation standards.

Separation standards. The following standards apply to all oil and gas production activities within the town limits.

Unless otherwise expressly permitted under this article, a drill site may not be located within one thousand feet (1,000') of:

Any existing protected use area or freshwater well currently in use at the time an application and/or site plan is submitted to the town for a permit required under this article.

Any undeveloped property with a previously approved, unexpired plat or site plan that indicates a use that is included in the definition of protected use area under this article.

A freshwater well if such well is indicated for use in a previously approved, unexpired plat or site plan.

The one hundred (100) year floodplain, as determined by FEMA and the town’s floodplain administrator.

Except where more stringent separation distances are specified, the minimum separation distance between a drill site and a habitable structure shall be one thousand feet (1,000').

All potential off-site permanent sources of ignition, such as fuel stations and fuel storage tanks shall be set back a minimum distance of three hundred feet (300') from the drill site.

The town council may grant a variance in accordance with section 14.04.004 of this article reducing the minimum separation distances established in subsections (1) and (2), except that the minimum separation distance that the town council may grant under a variance shall not be less than seven hundred and fifty feet (750'). Notwithstanding this provision or any other provision in this article, the town council may not grant a variance or approve of a reduction in any distance requirement that would allow a drill site to be located less than one thousand feet (1,000') from a freshwater well.

With respect to a proposed or existing drill site, the separation distances established in subsections (1) and (2) may be reduced and any separation distance established by a previously approved variance under subsection (3) may be further reduced if all owners of protected use areas - and all owners of undeveloped property designated for development as protected use areas under an unexpired plat or site plan - consent to the reduction and the town council formerly approves the reduction after receiving proof of such consent. The applicant desiring such a reduction must provide proof of such consent to the town in the form of notarized waivers signed by each of the property owners described above, which must be submitted to the planning department. This subsection does not allow the reduction of any separation distance established under this article that applies to a freshwater well. This subsection does not allow any separation distance set forth in this article or previously approved by variance to be reduced to less than five hundred feet (500').

A proposed protected use area may be located as close as two hundred fifty feet (250') to a preexisting drill site or operation site, provided that the protected use area is not served by a freshwater well that is located within one thousand feet (1,000') of a drill site.

Separation distances shall be measured from the nearest point on the drill site boundary, in a straight line, without regard to intervening structures or objects, to, as applicable:

The nearest point on the property boundary of any existing protected use area;

The nearest exterior point of any habitable structure;

The nearest exterior point of any freshwater well currently in use;

The nearest point on the property boundary of any undeveloped property designated to be used as a protected use area in a previously approved, unexpired plat or site plan; or

The nearest exterior point of a freshwater well, whether or not such freshwater well is currently in operation, provided that the freshwater well is designated to be used in a previously approved, unexpired plat or site plan.

No operator shall excavate or construct any lines for the conveyance of fuel, water, oil, oil and gas or petroleum liquids on, under or through the streets, alleys or other properties owned - or held in trust for the public - by the town without the town’s consent, which is not effective unless set forth in a duly adopted easement or right-of-way agreement.

No person may dig up, break, excavate, tunnel, undermine, break up, or damage any public street or leave upon any public street any earth, or other material or obstruction without prior written permission from the town.

§ 14.04.035 Drill/operation site management standards.

No well permit shall be issued for any well to be drilled - and no person shall drill a well - within any street, street right-of-way, or future street right-of-way shown on the master thoroughfare plan, nor within one hundred feet (100') of any such existing or future street or right-of-way. No street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained from the town.

(Ordinance 2011-12-6D, sec. 2.03, adopted 12/6/11; Ordinance 2012-1-3A, sec. 2.03, adopted 1/3/12; Ordinance 2012-1-3A, secs. 2.04–2.05, adopted 1/3/12)

Transportation and circulation plan requirements.

The operator shall submit a transportation plan showing proposed transportation routes and roads, both public and private, to be used for transporting equipment, chemicals, or waste products used or produced by the gas operation. The operator shall also submit a circulation plan showing internal drives and circulation.

Vehicles associated with drilling and/or production in excess of three tons shall be restricted to such streets designated as arterials in the town’s transportation plan. The vehicles shall be operated on state arterials whenever possible. Such vehicles shall be operated only on town arterials when it is not possible to use a state arterial to fulfill the purpose for which such vehicle is then being operated. No vehicles shall be parked, stored or operated anywhere within the town’s corporate limits where such operation, parking, or storage is prohibited under state law or town regulations.

A statement of intent to enter into a road repair agreement shall be submitted in conjunction with the application for a permit. The terms of the road repair agreement must be approved by the town council as a condition of the permit and signed by the operator prior to the issuance of any permit under this article.

The operator shall construct all facilities located off the pad side and used for parking, loading, unloading, driveways, and other vehicular access areas of concrete. The operator shall maintain the surface for such facilities and drive approach in good condition and repair and meet the minimum requirements set forth in the town’s fire code and fire prevention regulations. The pad site is not required to be constructed of concrete or asphalt.

The operator shall install truck shakers along the private access road to remove mud from vehicles prior to entering the public right-of-way.

The operator shall immediately notify the town of any substantial accumulations of dirt, dust, mud, or other debris deposited on town thoroughfares by vehicles involved in the well drilling or servicing or pipeline installation process. The operator shall be responsible for immediate removal of accumulations of dirt, dust, mud, or other debris from streets within the town’s corporate limits.

Site security plan requirements.

Security gates.

Secured vehicle and personnel entrance gates shall be required and signs identifying the entrance to the drill site or operations site shall clearly identify each point of entry and exit.

The operator shall keep all gates to the drill site and operation site locked at all times that the operator or the operator’s employees are not within the enclosure. A “knox padlock” or a “knox box with a key” shall be provided to the town’s fire chief to access the drill site to be used only in case of an emergency.

Perimeter security fencing.

The operator shall install and maintain a temporary chain-link fence with all-weather screening fabric and secured entrance gate, both at least eight feet in height around the entire drill site to secure the drilling site and obscure view of the drilling activities. In addition to the foregoing, the operator shall also be required to comply with the screening requirements set forth in subsequent sections of this article.

A masonry perimeter wall of a minimum of eight feet in height shall be required to enclose and visually screen the well and all associated equipment during post-drilling operations. No permanent equipment shall be visible from the adjacent rights-of-way or from residential properties. No permanent equipment on the drill site shall be a higher elevation than the associated screening wall. Only devices such as antennas, lightning arrestors, or other related devices may extend above the height of the screening wall. Such wall must be completed within 60 days of completion of drilling or as required by the town council as a condition of the conditional use permit. The masonry perimeter wall shall have an architectural metal gate that shall remain locked when the operator or operator’s employees are not within the enclosure. In addition to the foregoing, the operator shall also be required to comply with the screening requirements set forth in town regulations related to zoning.

An eight-foot high chain link fence with barbed wire or similar device, as approved by the town council, shall be installed around all equipment on the pad site and interior to the perimeter screening wall.

Alarm system.

Within ten days of completion of the perimeter fencing, the operator shall install a fully operational security system that meets the following requirements:

Remotely monitored access control system.

The operator shall install and maintain at all vehicular gates in the perimeter fencing a permitted, remotely monitored control access system. The system shell meet the following requirements:

Monitoring.

The system shall be monitored by a central monitoring facility capable of monitoring security related alarm systems and meeting all required state and federal guidelines. The central monitoring facility shall be staffed and operational at all times.

Access control.

Gate access shall be secured by an access control system with an unlocking and relocking mechanism that requires a card, numeric code, or other identification device for gate operation. The system shall record the identity of the entering party and the date and time of such entry.

Intrusion detection system.

The system shall include a gate closure contact sensor that will be activated when the gate closure sensor is violated in any manner by nonidentified access. The system shall be equipped to signal a control panel which activates an on-site audible signal and registers at the monitoring facility when an access breach is detected.

Leak detection system.

The operator shall install and maintain an audible alarm system at each drill site to provide warnings for a substantial drop in pressure, the release of any gas or oil, or fire. Said alarm system shall be approved by the fire chief or his or her designee prior to beginning any drilling or production operations.

Open gate detection.

The security system shall include an open gate detection alarm to notify the monitoring facility if the gate closure sensors, once accessed, are not closed and thereby reactivated within five minutes of being opened.

Exit sensor.

The operator shall equip all gates with a motion sensor, weight sensor or other device to unarm the gate for vehicles exiting the site.

Personnel exit gate.

The operator shall install an exit-only gate for personnel near the vehicular gate entrance.

Response to alarms.

The operator shall obtain an alarm permit for the alarm system from the police department in accordance with the town’s alarm permit requirements. The monitoring facility shall notify the operator and the police department in case of security breach at the drill site. The operator shall respond on site with an authorized representative within 45 minutes of notification of alarm.

Security camera(s).

The operator shall at all times after the perimeter fence is in place, have installed a minimum of one operating security camera inside the perimeter fence and post on the fencing of the site, signs indicating that any activity on the site may be recorded by video surveillance. Such sign shall conform to the approved sign plan. The location of the security camera and picture resolution of the recordings shall be subject to the approval of the police chief. Camera systems shall be maintained in proper operating condition and do all of the following:

Capture clear video images of all traffic entering and exiting the gate(s).

Capture clear video images of all production equipment located on the site.

Be equipped with motion detection technology.

Be equipped with panning technology to pan immediately to any motion detected on the site.

Show the date and time of all activity on the footage.

Be capable of being viewed at the monitoring facility. The operator shall maintain continuous video data for a period of at least 720 hours. At the request of the town, the operator shall produce any recorded views of the fenced area.

Watchperson.

The operator must keep a watchman or security personnel at all times on site during the drilling or reworking of a well when other workmen are not on the premises.

Sign plan requirements.

The operator shall immediately install and continuously display a sign at the gate on the temporary and permanent site fencing erected pursuant to the requirements of this section. Such sign shall be constructed of a durable material, maintained in good condition and, unless otherwise required by the railroad commission, shall have a surface area of not less than two (2) square feet, or more than four (4) square feet and shall contain the following:

Well name and number.

Name of operator.

Address of property.

The emergency 911 number.

Telephone numbers of two persons responsible for the well who may be contacted 24 hours a day in case of an emergency.

The operator shall post and continually maintain permanent weatherproof signs reading “DANGER NO SMOKING ALLOWED” immediately upon completion of the drill site fencing at the entrance of each drill site and in any other location approved or designated by the fire inspector of the town. Such sign shall conform to the approved sign plan. Each such sign shall include the emergency notification numbers of the fire department and the operator, well, and lease designations required by the railroad commission.

A sign shall be placed at the exit to the site that reads “ALL TRUCK TRAFFIC IS REQUIRED TO FOLLOW THE APPROVED TRANSPORTATION ROUTE. VIOLATORS SUBJECT TO $2,000.00 FINE. TODOS LOS CAMIONES ESTAN OBLIGADOS A SEGUIR LAS RUTAS DE TRANSPORTE APROBADAS. LOS INFRACTORES ESTAN SUJETOS A MULTAS DE $2,000.00.” The sign lettering, size, and background shall meet town specifications. A directional arrow shall be placed immediately below the above sign and shall indicate the proper direction of travel for exiting truck traffic. The sign shall be placed in a location that is visible to exiting truck traffic and shall not be placed within town right-of-way.

No other signs shall be permitted at the site other than those required by this article or other law.

Landscaping plan requirements.

Screening shrubs shall be installed completely around the well site outside of required screening fences and be sufficient to screen from view the structures sought to be screened. Screening shrubs shall be planted once all equipment has been set in place and the first well has been drilled and completed. The landscaping screening shall be indicated on the site plan and shall be subject to the approval of the planning and zoning commission and town council.

The landscaping plan shall include measures to be taken to adequately irrigate all landscaping, including indicating the water source for irrigation, and the proposed efforts to replace dead or dying screening vegetation.

§ 14.04.036 Operations and equipment performance standards.

All trees on site shall be irrigated by a bubbler system.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

Gas or oil production activity performance standards.

On-site refinement.

No refining process or any process for the extraction of hydrocarbon products shall be performed at a drill site or operation site, except that a horizontal separator may be maintained for the separation of liquids from oil and gas. Any such separator may serve more than one well. All production equipment on an operation site shall be maintained in good working order at all times.

Blowout prevention.

In all cases, the operator shall install and utilize blowout prevention equipment on all wells being drilled, worked-over, or in which tubing is being changed. Protection shall be provided to prevent blowout during oil and/or gas operations as required by and in conformance with the requirements of the railroad commission and the recommendations of the American Petroleum Institute. The operator must equip all drilling wells with adequate blowout preventers, flow lines and valves commensurate with the working pressures involved as required by the railroad commission. A blind/shear ram shall be used as part of the blowout preventer stack. Well control surface equipment shall be inspected after rig up to ensure function and appropriate application for the well parameters. Upon completion of the well, the operator shall run a seating nipple in the tubing string to accommodate the installation of a subsurface safety shutoff valve. The subsurface safety shutoff valve shall be installed if producing conditions necessitate the use of the device for the safe operation of the well.

Closed loop mud systems.

The operator shall install and use a closed loop mud system instead of lined reserve pits.

Frac or surface ponds.

Fracturing ponds or surface freshwater ponds are not permitted within the town.

Disposal well.

No saltwater or other type of disposal well shall be permitted.

Fracturing operation standards.

The operator shall notify the oil and gas inspector in writing no less than twenty (20) days prior to starting completion procedures such as fracturing and perforating, and such work shall not commence until the inspector has approved the proposed work in writing. At least ten (10) business days before operations are commenced, the operator shall post a sign at the access road entrance of the drill site advising the public of the date the operations will commence; the sign shall have white letters on a red background. The well must be equipped with a blowout preventer or Christmas tree in place before this operation is commenced. If a bridge plug is set over a producing formation prior to additional completion, it must be pressure-tested to a sufficient pressure to ensure that it is not leaking.

Water usage standards.

Hydraulic fracturing shall be prohibited during the summer months of June, July, and August and during any periods of time in which water conservation measures have been enacted by the town.

Drilling.

No air, gas, or pneumatic drilling shall be permitted.

Drilling fluids.

Low toxicity glycols, synthetic hydrocarbons, polymers, and esters as approved by the town council, shall be substituted for conventional oil-based drilling fluids. Appropriate green fluids shall be used to the extent possible. The operator shall add nonradioactive tracing or tagging additives into fracturing fluids and the inspector shall be notified, in writing, of the formula identifying such additive(s). The written formula submitted by the operator shall be unique for each permitted drill site.

Drilling fluid storage pit.

No drilling fluid mud, storage, or reserve pits shall be located within the town, except steel containers used in a closed loop mud system.

(11)

Drill stem testing.

Drill stem tests may be conducted only if the well effluent produced during the test is processed through an adequate oil and/or gas separator to storage tanks and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe.

(12)

Electric motors.

Only electric prime movers or motors shall be permitted for the purpose of pumping wells. No electric power shall be generated on location. All electrical installations and equipment shall conform to town regulations and applicable national codes.

(13)

Gas emission or burning restrictions.

No person shall allow, cause, or permit gases to be vented into the atmosphere or to be burned by open flame. No open flaring is permitted. A vapor recovery system is required and the fracturing process shall not be completed until a sales line is in place to service the well. Green completion methods, as defined by this article, are required.

(14)

Muffling exhaust.

Exhaust from any internal combustion engine, stationary or mounted on wheels, used in connection with the drilling of any well or for use on any production equipment shall not be discharged into the open air unless it is equipped with an exhaust muffler or mufflers, or an exhaust muffler box constructed of noncombustible materials sufficient to suppress noise and prevent the escape of obnoxious gases, fumes, or ignited carbon or soot.

(15)

Pipe dope.

Lead-free, biodegradable pipe dope shall be substituted for American Petroleum Institute (API) specified pipe dope. Sealant shall be used around pipe threads to ensure and maintain the integrity of the seal.

(16)

Three-pipe system.

The three-pipe system to extract oil and gas shall be utilized. Water storage tanks shall not be permitted on the pad site except for oil and gas separators used during drilling and freshwater tanks used during fracturing.

(17)

Utility lines.

The operator shall bury all utility lines to the drill site and operation.

(18)

Compression facilities.

Compression facilities are prohibited in the town.

(19)

Painting.

The operator shall paint and maintain all production equipment at all times, including wellheads, pumping units, tanks, and buildings or structures. Paint shall be of a neutral color, compatible with surrounding uses. Neutral colors shall include sand, gray and unobtrusive shades of green, blue, and brown. Notwithstanding the foregoing, the town council may require the use of specific paint colors, on a case-by-case basis, as part of the applicable permit.

(20)

Blowouts.

In the event of the loss of control of any well, the operator shall immediately take all reasonable steps to regain control regardless of any other provision of this article and shall notify the town as soon as practicable. If the town determines that danger to persons and property exists because of such loss of well control and that the operator is not taking or is unable to take all reasonable and necessary steps to regain control of such well, the town may then employ any well control expert or experts or other contractors or suppliers of special services, or may incur any other expenses for labor and material which they deem necessary to regain control of such well, and all costs incurred by the town shall be assessed against the operator and the operator shall pay such costs within ten days of receiving an invoice from the town. In the event that the operator fails to pay such costs as provided herein, the town may charge such costs to any fund or bond posted by the operator to secure such costs, and shall also have a valid lien against the interest in the well of all working interest owners to secure payment of any expenditure made by the town pursuant to such action of the town in gaining control of said well.

Equipment storage requirements.

On-site storage is prohibited on the drill site and operation site. No equipment shall be stored on the site, unless it is necessary to the everyday operation of the well. Lumber, pipes, tubing, and casing shall not be left on the site except when drilling or well servicing operations are being conducted on the site. No refinery, processing, treating, dehydrating, or absorption plant of any kind shall be constructed, established or maintained on the premises, provided that this shall not be deemed to exclude a conventional horizontal gas separator.

Storage tank performance requirements.

All tanks and permanent structures shall conform to the A.P.I. specifications unless other specifications are approved by the town. All storage tanks shall be equipped with a secondary containment system including lining with an impervious material. If the area is open to rainfall, secondary containment shall be designed to include the volume of a 24-hour rainfall as determined by a 100-year storm and provisions shall be made to drain accumulations of groundwater and rainfall.

All tanks shall be set back pursuant to the standards of the railroad commission and the national fire protection association, but in all cases, shall be at least three hundred feet (300') from any other fuel source not related to the operator’s operations, one hundred feet (100') from any public right-of-way and/or adjacent property line, and shall not be placed within the floodplain. Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank. The town council may require installation of barriers and/or other protections for any tank located within one hundred and fifty feet (150') of a public right-of-way or other public property.

The operator shall equip any tank battery facilities with a remote foam line and lightning arrestor system, and shall erect a sign clearly indicating the location of the foam line and lightning arrestor system. All connections for the remote foam line arrestor system shall meet industry specifications and be approved by the fire inspector.

Work hours for well permits.

Drill site operations shall be conducted only between the hours of 7:00 a.m.–7:00 p.m., six days per week, excluding Sunday. Truck deliveries of equipment and materials associated with drilling and/or production, well servicing, site preparation, and other related work conducted on the drill site or operation site shall be limited to between the above same work hour restrictions except in cases of fires, blowouts, explosions, and any other emergencies or where the delivery of equipment is necessary to prevent the cessation of drilling or production.

Lighting plan requirements.

No person shall permit any lights located on any drill site or operation site to be directed in such a manner so that they shine directly on public streets or adjacent or nearby property. Site lighting shall be used only to promote drill site or operation site safety and shall adhere to the requirements of town regulations related to lighting.

The location and specification for proposed lighting shall be indicated on the site plan and included in the well permit application.

(f)

Noise management plan requirements.

No well shall be drilled, redrilled, or any equipment operated at any location within the town’s corporate limits in such a manner so as to create any noise which causes the exterior noise level anywhere within one hundred feet (100') of the boundary of the property line of a protected use area or within 100 feet of a habitable structure, to exceed the ambient noise level:

By more than ten decibels during fracturing operations.

By more than five decibels during daytime hours or more than three decibels during nighttime hours for all activities not addressed in subsection (1)(A) above.

An operator shall not drill or redrill a well or operate any equipment in such a manner so as to create pure tones where one-third octave band sound-pressure level in the land with the tone exceeds the arithmetic average of the sound-pressure levels of two contiguous one-third octave bands by five (5) dB for center frequencies of 500 hertz and above, and by eight (8) dB for center frequencies between 160 and 400 hertz, and by fifteen (15) dB for center frequencies less than or equal to 125 hertz.

An operator shall not drill or redrill a well or operate any equipment in such a manner so as to create low-frequency outdoor noise levels that exceed the following decibel levels:

16 hertz octave band: 65 dB.

32 hertz octave band: 65 dB.

64 hertz octave band: 65 dB.

The operator shall be responsible for establishing and reporting to the town the predrilling ambient noise level prior to the issuance of a well permit. Once the drilling is complete, the operator shall be required to establish a new ambient noise level prior to the installation of any new noise generating equipment. In lieu of the foregoing, the town may elect to perform the required noise testing and establish the ambient noise level.

Adjustments to the noise standards as set forth above in subsection (f)(1) of this section may be permitted in accordance with the following:

Permitted Increase (dBA)	Duration of Increase (minutes)*
5	15
10	5
15	1
20	<1

*Cumulative minutes during any one-hour period.

No workover or reworking operations shall be permitted during nighttime hours.

If the proposed well is located within one thousand feet (1,000') of any habitable structure, the operator must comply with these additional abatement measures:

Exterior noise levels, including pure tone and low frequency data, shall be continuously monitored to ensure compliance. This data shall also include an audio recording to help identify the source of sound level “spikes” throughout the logging period. The continuous noise monitoring equipment shall be capable of wireless transmission of real-time noise and audio data. Access to this real-time data shall be made available to the inspector. The cost of all such monitoring shall be borne by the operator. The noise readings shall also be submitted to the inspector on a weekly basis in an electronic format or other format specified by the inspector. The weekly report shall state whether the drill site is in compliance with the noise requirements. If the report states that the drill site is not in compliance with the noise standards, then the report shall state the measures that are being taken to return the drill site to compliance and the timeframes for implementing these remedial measures.

At a minimum, the operator shall install noise reduction blankets on the drill site boundaries facing any habitable structure within one thousand feet (1,000'). The height of boundary blankets shall at a minimum be 30 feet (30'). The height may be increased at the discretion of the inspector in response to topographic necessity. In addition to the boundary barriers, the operator must, at a minimum, install additional noise reduction blankets to mitigate noise generated from the rig substructure, the rig floor area, brake drum housings, mud pumps, diesel motors, and generators. The blankets shall be constructed of a fire retardant material approved by the fire department.

Acoustical blankets, sound walls, mufflers or other alternative methods as approved by the town may be used to ensure compliance with this article. All soundproofing shall comply with accepted industry standards and is subject to approval by the fire inspector. Noise mitigation measures will be evaluated on a case-by-case basis. The inspector may require the operator to use noise reduction blankets that meet a standard of STC 30 or greater, if necessary.

The sound level meter used in conducting noise evaluations shall meet the American National Standard Institute’s standard for sound meters or an instrument and the associated recording and analyzing equipment which will provide equivalent data.

Concurrent with a permit application, the operator shall file a noise management plan, prepared by a noise control engineer or other qualified person approved by the inspector, which shall detail how the equipment used in the drilling, completion, transportation, or production of a well complies with the maximum permissible ambient noise levels of this article. Violation of the noise management plan shall be a violation of this article. The noise management plan must be approved by the town and must comply with the following requirements:

Identify operation noise impacts.

Establishes the ambient noise level for both daytime and nighttime hours prior to and after the installation of the noise-generation equipment.

Detail how the impacts will be mitigated. In determining noise mitigation, specific site characteristics shall be considered, including but not limited to the following:

The location, type, nature and proximity of adjacent development.

Seasonal and prevailing weather patterns, including wind directions.

Vegetative cover on or adjacent to the site.

Topography.

Operation and site noise management measures which may include, but not be limited to use of critical grade mufflers on generators and motors; use of structural noise curtains, walls, or enclosures; and best management practices by limiting or eliminating noisier operations, such as tripping, deliveries of pipe, casing and heavy loads, use of horns for communication and operation of vehicle audible backup alarms during nighttime hours.

Mitigation of pure tone and low tone frequency noise.

(g)

Dust mitigation plan requirements.

The operator must submit a dust mitigation plan detailing measures to be implemented to mitigate and suppress dust generated at the drill site and the private vehicle access route.

The operator shall conduct all drilling and production operations in such a manner as to minimize dust, vibration or noxious odors, and in accordance with the best accepted practices incident to drilling for the production of oil, gas and other hydrocarbon substances.

The operator shall construct and operate all equipment so that vibrations, dust, odor, or other harmful or annoying substances or effect created by the operations carried on at any drill site or from anything incident thereto will be minimized.

Proven technological improvements in industry standards of drilling and production in this area shall be adopted as they become available if capable of reducing factors of dust, vibration, and odor. Brine water, sulphur water, or water in mixture with any type of hydrocarbon may not be used for dust suppression.

(h)

Waste management and site restoration plan requirements.

The operator must submit a waste management plan that addresses human, solid and drilling production waste. The drill site shall at all times be kept free of debris, pools of water or other liquids, contaminated soil, weeds, brush, trash, or other waste material outside the drill site.

Drilling mud, cuttings, liquid hydrocarbons, and all other field waste derived or resulting from or connected with the drilling, reworking, or deepening of any well shall be discharged into an above-ground self-contained tank. All disposals must be in accordance with the rules of the railroad commission and any other applicable local, state or federal agency. Unless otherwise directed by the railroad commission, waste materials shall be removed from the site and transported to an off-site disposal facility not less often than one time every 30 days. Water stored in on-site tanks shall be removed as necessary.

After any spill, leak or malfunction, the operator shall remove or cause to be removed to the satisfaction of the town all waste materials from any public or private property affected by such spill, leak, or malfunction. Cleanup operations must begin immediately. The operator shall be subject to criminal citation and a fine of up to $2,000.00 per violation for each day the violation is permitted to continue.

All waste shall be disposed of in such a manner as to comply with the air and water pollution control regulations of the state, this article, and any other applicable town regulations.

The operator shall remove the drilling rig from the site within 30 days of the completion of all drilling activities indicated on the applicable well permit.

Within 30 days of the completion of the well, or within 30 days of completion of reworking a well, as the case may be, or within such longer timeframe as determined appropriate by the town, but not to exceed 90 days, the operator shall clean up and clear the area around the well of all material and equipment, fill all holes and excavations, and grade the land and return it to its original condition, including replanting of vegetation to match the surrounding area.

Bond for surface restoration.

The operator shall restore surface locations of all dry wells and/or abandoned operations as nearly as possible to its original condition. The operator shall submit a performance bond in a form acceptable to the town to cover the costs of any clean up necessary.

The amount of the performance bond shall be equal to $60,000.00; provided however, the amount may be higher if the administrator determines that the estimated cost of the restoration project, including labor and materials, will likely exceed that amount.

After the site has been cleaned up and screened, the operator shall notify the town for a final inspection. Prior to the final inspection, the operator must provide the town with geographic coordinates of the well bore, using the North American Datum 1983 (NAD 83), Texas State Plane - North Central Zone (4202), in U.S. feet.

Emergency response plan requirements.

The operator shall submit an emergency response plan with the gas or oil well permit application. Said plan shall use existing guidelines established by the Railroad Commission, the Texas Commission on Environmental Quality, Texas Department of Transportation and the United States Environmental Protection Agency. The emergency response plan shall be kept current with any additions, modifications, and/or amendments concerning all construction related activities, gas and oil production activities. Updated plans shall be submitted to the oil and gas inspector, fire chief, and fire inspector within two (2) business days after any additions, modifications, or amendments are made. A copy of the emergency response plan shall be kept on site. The emergency response plan shall, at a minimum, provide for:

Prompt and effective response to emergencies regarding:

Leaks or releases that can impact public health, safety, and welfare.

Fire, explosions, loss of well control, or blow out at the well or in the vicinity of an oil or gas well.

Natural disasters.

Effective means to notify and communicate required and pertinent information to local fire, police, and public officials during an emergency, including a detailed plan that should address contacting town officials responsible for implementing town policy regarding notification and evacuation of residents, where necessary.

The availability of personnel, equipment, tools, and materials as necessary at the scene of an emergency.

Measures to be taken to reduce public exposure to injury and the probability of accidental death or dismemberment.

Fire department and HAZMAT response times.

Emergency shutdown of an oil or gas well and related site.

(G)

The safe restoration of service and operations following an emergency or incident.

(H)

A followup incident investigation to determine the cause of the incident and require the implementation of corrective measures.

The operator shall conduct a thorough testing of its evacuation plan on an annual basis including performing “unplanned” evacuation scenarios, to ensure disaster preparedness. The operator shall provide seven days written notice of the time and date of each test to the town. The fire chief may observe the test and may require the inclusion of certain evacuation scenarios as a component of the test. The operator shall then certify in writing to the town on an annual basis that a test of the evacuation plan has been performed.

(j)

Fire prevention plan requirements.

The operator shall provide and maintain on the drill site and operation site at all times during drilling and production operations all firefighting apparatus and supplies which are required by the town, or which are required by any applicable federal, state or local law, at the operator’s cost. The operator shall be responsible for the maintenance and upkeep of such equipment. Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure. All wellheads shall contain an emergency shutoff valve to the well distribution line. The operator shall paint these valves red and post signs to show they are shutoff valves.

Each operator shall be required to provide training and instruction to the fire department regarding well safety and emergency management protocol, and all information specific to the well operation which is requested by the fire chief or the fire chiefs designee, or which is relevant to emergency management activities at the site. Such fire department training must occur prior to the operator conducting drilling operations under the operator’s first well permit.

(k)

Hazardous materials plan requirements.

The operator shall file with the town a hazardous materials management plan and shall update such plan by filing any additions, modifications, and/or amendments regarding all construction related activities and oil and natural gas operations and production. The plan shall include HAZMAT and fire department response times and updated hazardous materials plans and shall be submitted to the oil and gas inspector, fire inspector and fire chief within two (2) business days of any material change in the activities at the site from that approved in the well permit.

(l)

Chemical and material storage requirements.

The operator shall store all chemicals and/or hazardous materials in such a manner as to prevent, contain, and facilitate rapid remediation and clean up of any accidental spill, leak or discharge of a hazardous material. The operator shall maintain all current material safety data sheets (MSDS’s) for all hazardous and nonhazardous materials and chemicals on site. The MSDS shall indicate all types, quantities, volumes, and concentration of all additives used in site preparation, drilling, completion, and fracturing (or similar programs). The MSDS must be provided quarterly to the town, consistent with the requirements of this article. The operator shall comply with all applicable federal and state regulatory requirements for the proper labeling of containers. The operator shall take all appropriate pollution prevention actions including but not limited to raising chemical and materials and bulk storage (e.g., placing such materials on wooden pallets), installing and maintaining secondary containment systems, and providing adequate protection from stormwater and weather elements. The operator shall only use appropriate green compounds as approved by the town council as part of the submission requirements outlined in this article. The site shall not be used for long-term storage of additives.

(m)

Fire suppression.

The operator shall provide and maintain in good working order all fire suppression and prevention equipment required by any applicable federal, state, or local law, or the operator’s emergency response plan, at the operator’s cost. The operator shall keep adequate foam fire suppressant equipment and supplies at each drill site, in addition to any fire suppressant equipment and supplies deemed necessary by the fire inspector.

(n)

Reporting requirements.

Requirement to report emergencies.

The operator shall within 48 hours notify the town of any incident resulting in product loss from a hydrocarbon storage facility or pipeline facility, blowout, fire, explosion, incident resulting in injury, death, or property damage, or any other significant incidents as defined by the town.

A written report, containing a brief summary of the incident, shall be submitted to the town by 5:00 p.m. on the first business day following the incident.

A followup report shall be submitted to the town within 24 hours following the incident. The operator responsible for the followup incident report shall include the following information:

Operator/applicant name, phone number, addresses, and e-mail address.

Description of the incident, including, but not limited to, the time, date, location, and cause of the event.

Duration of the incident, that is, when it began and when it terminated to the degree that it no longer constituted a hazard to the health, safety, and well-being of persons or property, regardless of the distance or separation from the place of incident.

How the incident was brought under control and/or remedied.

A full and complete description of the type of intercompany investigation or other investigation or inquiry that was made concerning the incident, the findings or results of such inquiry or investigation, and the action taken as a result of the findings and inquiry concerning the prevention of the existence of future hazards.

Signed and dated by the person responsible for such report.

The operator shall provide a copy of any “incident reports” or written complaints submitted to the Texas Railroad Commission within 24 hours after the operator has notice of the existence of such reports or complaints.

Beginning on December 31st, after each well is completed, and continuing on each December 31st thereafter until the operator notifies the town that the well has been abandoned and the site restored, the operator shall submit a written report to the town identifying any changes to the information that was included in the application for the applicable permit that have not been previously reported to the town.

A quarterly extended gas analysis report must be provided to the town once completion or fracturing begins. The report must be in a format and include data as specified by the town’s gas technical advisor.

Periodic reporting requirements.

The operator shall notify the town of any changes to the following information within one business day after the change occurs.

The name, address, and phone number of the operator.

The name, address, and 24-hour phone number of the person(s) with supervisory authority over drilling or operations activities.

The name, address, and phone number of the person designated to receive notices from the town, which person shall be a resident of the state that can be served in person or by registered or certified mail.

The operator’s emergency response plan.

Notice of activities.

Any person who intends to rework a well using a drilling rig, to fracture stimulate a well after initial completion shall give written notice to the town at least 14 days before the activities begin.

Written notices must be provided, by the operator, to all residences within one thousand feet (1,000') of a drill site or operation site, 24 hours prior to hydraulic fracturing of a wellhead.

The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted.

The notice shall also provide the address and 24-hour phone number of the person conducting the activities.

The person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address, and 24-hour phone number of the person conducting the activities.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

§ 14.04.037 Environmental standards.

Site erosion control, run-off, and groundwater protection standards.

Erosion and stormwater control practices approved by the town shall be conducted for all gas and oil wells. Compost berms that are at least 3-feet high and 4-feet wide, or equivalent erosion devices, shall be installed so that all portions of the pad site that may drain offsite are contained.

Damage resulting from sedimentation and/or erosion shall be repaired within 48 hours.

Gas or oil wells may not have a target location or bottom-well hole location that is under the floodway when the gas or oil well is drilled directionally from a location outside such areas.

No oil or gas well drill sites shall be allowed on slopes greater than ten (10) percent.

No person shall place, deposit or discharge or cause or permit to be placed, deposited or discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, refuse, wastewater, brine, or hazardous substance from any production operation or the contents of any container used in connection with any production operation in, into or upon any public right-of-way, storm drain, ditch or sewer, sanitary drain or sewer, waterway or body of water, or any private property in the town.

Organic solvents, such as trichloroethylene and carbon tetrachloride, shall not be used for cleaning any element, structure, or component of the drilling rig, platform and/or associated equipment, tools or pipes.

Any wells drilled as part of a gas well and testing of adjacent wells shall meet the following requirements:

No well permit will be issued for any well where the center of the well at the surface of the ground is located within 1,000 feet of an existing freshwater well intended for domestic use.

The operator shall, within 120 days of its completion date, equip each well with a cathodic protection system to protect the production casing from external corrosion, unless the town approves an alternative method of protecting the production casing from external corrosion. The operator of a well shall provide the town with a “predrilling” and “post-drilling” water analysis and flow rate from any existing freshwater well within two thousand feet (2,000') of the well and any existing freshwater perennial or intermittent stream, pond, or wetland within two thousand feet (2,000'). The analysis shall be performed by an independent inspector approved by the town. Such water tests shall conform to the following testing requirements:

Water samples must be collected and analyzed utilizing proper sampling and laboratory protocol from a U.S. Environmental Protection Agency or Texas Commission on Environmental Quality approved laboratory.

Water samples shall be analyzed prior to any construction activity to document baseline water quality data of the well. Continuous quarterly water testing shall begin once construction of the site begins and shall continue until abandonment of all wells on the pad site.

Parameters to be tested for, include, but are not limited to TDS, chlorides, VOC’s, TPH, TPH fractioned, SVOC’s, HAP, methane, ethane, dissolved gases, and other target compounds based on drilling and fracturing additives disclosed by the operator.

If it is found that the freshwater well is no longer in use and without possibility of future use or if the freshwater well owner objects to having the water well tested, the owner of the freshwater well may waive the right to have the operator test the water.

A copy of the determination by the Texas Commission on Environmental Quality of the depth of useable quality groundwater shall be provided to the town.

After any spill, leak, or malfunction, the operator shall remove or cause to be removed all waste materials from any public or private property affected by such spill, leak, or malfunction. Cleanup operations shall begin within 48 hours.

The drill site shall at all times be kept free of debris, pools of water or other liquids, contaminated soil, weeds, brush, trash, or other waste material.

(G)

The operator shall install drip pans and other containment devices underneath all tanks, containers, pumps, lubricating oil systems, engines, fuel and chemical storage tanks, system valves, connections, and any other areas or structures that could potentially leak, discharge or spill hazardous liquids, semi-liquids or solid waste materials, including hazardous waste. A secondary containment system shall be installed around all separators, tank batteries, and other fluid containing equipment on the drill site.

(H)

An operator must set and cement sufficient surface casing to protect all usable quality water strata, as defined by state law. The operator shall notify the town in writing at least 96 hours prior to the scheduled time for setting and cementing surface casing and such work shall not commence until the town has approved the proposed work in writing. In addition, the following requirements shall apply:

Centralizers must be used at an interval of one centralizer per 100 feet, or ten centralizers per 1,000 feet.

New surface casing is required.

Proper floating equipment shall be used.

Class “H” or class “C” cement with accelerators shall be used.

The operator shall circulate cement to surface; if not, the operator shall cement with one-inch tubing and top off.

The operator shall wait on cement a minimum of 12 hours prior to commencing further drilling operations.

(vii)

The operator shall test the blowout preventer before drilling out of surface casing to 1,000 psi. If it fails the pressure test, isolation tools must be placed in the hole to locate the leak and corrective measures must be implemented to repair the failure and ensure the pressure integrity of the casing before conducting subsequent operations.

Predrilling, post-drilling, and periodic soil sampling standards.

Upon application for a well permit, soil sampling shall be conducted prior to the commencement of any drilling activities at the proposed drill site to establish a baseline study of site conditions. A minimum of one (1) soil sample shall be taken at the location of any proposed equipment to be utilized at the site to document existing conditions at the drill site.

A third-party consultant shall collect and analyze all “predrilling” and “post-drilling” soil analysis. The cost of such fees and charges assessed by the third-party contractor shall be borne by the operator.

Soil samples must be collected and analyzed utilizing proper sampling and laboratory protocol from a United States Environmental Protection Agency or Texas Commission on Environmental Quality approved laboratory with a copy of the third-party analysis provided to the town.

Post-drilling soil samples shall be collected and analyzed after the conclusion of drilling of each well. Subsequent to the drilling of each well, periodic soil samples shall be taken to document soil quality data at the drill site, as requested by the oil and gas inspector.

When abandonment occurs pursuant to the requirements of the Texas Railroad Commission and as referenced in this article, the operator so abandoning shall conduct post production soil sampling when equipment is removed from the drill site to document that the final conditions are within regulatory requirements.

If it is found that the soil contains a prohibited amount (pursuant to state or federal law) of a hazardous substance, the operator shall remediate the location within thirty (30) days and thereafter soil sampling shall be collected and analyzed at such locations on the drill site as are necessary to determine compliance.

Air quality study requirements.

The operator shall submit a predrilling ambient air study of the drill site with its application for a well permit. The study shall be conducted by an air quality consultant experienced in the sampling and monitoring of oil and gas upstream operations and shall meet the following requirements:

Samples shall be taken at three locations specified by the gas inspector.

The study shall be conducted using summa canisters and shall utilize the TO-15 analysis, as written by the United States Environmental Agency and the D1946 analytical method.

Emissions plan requirements.

The operator shall submit a plan for controlling air contaminants. The plan shall include the following information and meet the following requirements:

A detailed site plan showing the location of each emission source.

For each source, composition of emissions and expected maximum daily and hourly emissions rate.

For each source, detailed descriptions of the measures taken and equipment used to reduce emissions below the levels listed in subsection (d)(2) of this section.

Nuisance emissions.

The emission of one or more of the following air contaminants which exceed the concentration identified in the preambient air study and which result in a net ground level concentration (GLC) in excess of the following concentrations at or beyond the setback distance specified in this article or the setback in a plan approved by the town council are determined to be and constitute a nuisance, at any time:

Benzene: 170 µg/m3.

Ethyl benzene: 2000 µg/m3.

Formaldehyde: 15 µg/m3.

Toluene: 640 µg/m3.

Xylene, m-: 180 µg/m3.

Xylene, o-: 1600 µg/m3.

(vii)

Xylene, p-: 250 µg/m3.

(viii)

Condensate and/or crude oil: 3,500 µg/m3.

(ix)

Natural gas: 18,000 µg/m3.

(x)

For any air contaminant or compound not listed above, the limit is the short term ESL listed for the compound in the TCEQ ESL list published June 2010. For compounds not published in the TCEQ ESL list, there is no established limit.

Benzene: 4.5 µg/m3.

Ethyl benzene: 1250 µg/m3.

Formaldehyde: 3.3 µg/m3.

Toluene: 640 µg/m3.

Xylene, m-: 180 µg/m3.

Xylene, o-: 180 µg/m3.

(vii)

Xylene, p-: 180 µg/m3.

(viii)

Condensate and/or crude oil: 350 µg/m3.

(ix)

Natural gas: 1,800 µg/m3.

(x)

For any air contaminant or compound not listed above, the lesser of the short term ESL or long term ESL listed for the compound in the TCEQ ESL list published June 2010. For compounds not published in the TCEQ ESL list, there is no established limit.

(xi)

Hydrogen sulfide (H2S): 0.08 ppm averaged over any 30-minute period.

Monitoring requirements.

Continuous air testing is required as soon as the first well is fractured or completed and must be maintained continuously until the well site is abandoned. Testing and air monitoring equipment used must be consistent with town-established methodology, as required by the applicable conditional use permit. If requested, the operator may witness testing conducted by the town consultant. The operator shall be responsible for the cost of all monitoring equipment. The location of the continuous monitoring equipment will be determined by town consultant with the operator’s representative present during installation. A gas chromatograph or a similar air monitoring testing system approved by the town council is required. The operator and/or town shall seek incorporation of all data generated into the Texas Commission on Environmental Quality air monitoring program.

(f)

Air quality best management practices.

All equipment at the operation site which has the potential to emit air contaminants must be maintained in good working order and operated properly during operations.

Each open-ended valve or line shall be equipped with a cap, blind flange, plug, or a second valve to seal the line so that no leakage of emissions occurs. If equipped with a second valve, both valves shall be closed except during sampling.

Tank hatches and valves, which emit to the atmosphere, shall remain closed except for sampling or planned maintenance activities.

All pressure relief devices (PRD) shall be designed and operated to ensure that proper pressure in the vessel is maintained and shall stay closed except in upset or malfunction conditions. If the PRD does not automatically reset, it must be reset within 24 hours at a manned site and within one week if located at an unmanned site.

All seals and gaskets in VOC or H2S service shall be installed, checked, and properly maintained to prevent leaking.

The operator shall follow manufacturer’s specifications and recommended programs for maintenance of equipment. In the absence of manufacturer’s recommended programs, each site shall establish and maintain a program to replace, repair, and/or maintain equipment to keep them in good working order. Replacement and repair of equipment shall follow these established programs.

Damaged or leaking valves, connectors, pumps, compressors, and agitator seals found to be emitting VOC’s in excess of 10,000 ppmv as determined using a portable analyzer, found by AVO inspection to be leaking (e.g., dripping process fluids), or found leaking using the alternative work practice shall be tagged and replaced or repaired.

To the extent that good engineering practices will permit, new and reworked valves and piping connections shall be located in a place that is reasonably accessible for leak-checking during operations.

(g)

Loading requirements.

The operator shall comply with the following requirements during loading of trucks and tanks:

The operator shall maintain all tanks, valves, fittings, hatches, and other equipment in such a way as to minimize the emissions of all volatile organic compounds.

If vacuum trucks are used at the site, vacuum pumps and blowers shall not be operated on trucks containing or vacuuming liquids with VOC true vapor pressure greater than 0.50 psi at 95F unless the vacuum/blower exhaust is routed to a control device or a controlled recovery system. Positive displacement pumps may be used.

The operator shall not allow condensate to be loaded into a tank truck unless the tank truck has passed a leak-tight test within the past 12 months.

For each tank truck traveling to the well development or operation site, the operator shall present the town a certification from an unrelated third party stating that the vessel has passed a leak-tight test within the past 12 months.

When loading materials with a vapor pressure greater than or equal to 0.5 psia at maximum loading temperature, the loading emissions shall be routed to a control device.

The operator shall conduct loading operations at all loading/unloading facilities, without visible liquid leaks or spills regardless of vapor pressure. The foregoing does not apply to momentary dripping associated with the initial connection or disconnection of fittings.

Sustained dripping from fittings during loading/unloading operations is not permitted.

The operator shall report to the TCEQ and to the town any liquid spill that occurs during loading/unloading activities that results in emissions that exceed a reportable quantity.

The operator shall cause a visual inspection of all lines and connectors to be made prior to hookup.

The operator shall cause any lines and connectors that are visibly damaged to be removed from service. Operations shall cease immediately upon detection of any liquid leaking from the lines or connections.

(h)

Tree preservation plan requirements.

Operators must submit a tree preservation plan with their gas or oil well permit in accordance with article 3.15: Natural Resource Management and Tree Protection of this Code of Ordinances.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

§ 14.04.038 Execution of well permits.

Well permit characteristics.

Each executed well permit issued by the town shall state the following:

The name of the well and its operator.

The date on which the town issued each permit.

The date by which drilling must commence.

That if drilling is commenced on the well covered by the permit before the permit expires, the permit shall continue until the well covered by the permit is abandoned and the site restored.

By reference, the indemnity, insurance, and security requirements set forth in this article.

That no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided such information.

(G)

By reference, the requirement for periodic reports.

(H)

By reference, the conditions of the applicable site plan, and/or conditional use permit.

(I)

By reference, the information contained in the permit application.

(J)

By reference, the applicable rules, and regulations of the railroad commission, including the applicable “field rules.”

(K)

The name, address, and phone number of the person designated to receive notices from the town.

(L)

By reference, all permits and fees required by the town.

A decision to deny an application for a well permit shall be provided to the operator in writing, including the reason for the decision. The operator may appeal any such denial to the town council.

If an application for a well permit is denied, nothing herein contained shall prevent a new application from being submitted to the town for the same well. A new application fee is not required if the application is denied without prejudice. Applications denied with prejudice must be accompanied by a new application fee upon reapplication.

If the application for a well permit is approved and a permit is issued, the operator shall file notice in the county real property records indicating the physical location of the permitted drill site and the well/bore hole.

A well permit shall automatically expire one year after the date of issuance of such permit if drilling has not commenced on the well covered by the permit within such period, provided, however, that the administrator may grant a one-year extension of time if existing conditions have not changed and an application for extension is filed with the administrator prior to expiration of the initial permit. If a well permit expires, the operator must file a new application for a new well permit as provided in this division.

Amendments to well permits.

An operator must submit an application to the town’s planning department to amend an existing well permit in order to commence drilling from a new drill site that is not shown on (or incorporated by reference as part of) the existing permit, to relocate a drill site or operation site that is shown on (or incorporated by reference as part of) the existing permit, or to otherwise amend the existing permit in any manner. The director of planning shall review the proposed amendment to determine if an amendment to the conditional use permit shall be required. If the director of planning determines that an amendment to the applicable conditional use permit is also required, the application for an amended well permit shall be processed as a new well permit application and shall include all application materials and the appropriate fee for new well permit applications set forth in the town’s fee schedule and an amendment to the applicable conditional use permit shall also be required.

Applications for amended well permits shall be in writing on forms provided by the town and signed by the operator, and shall include the following:

An application fee, which shall be nonrefundable regardless of the outcome of the application.

A description of the proposed amendments.

Any changes to the information submitted with the application for the current well permit.

Such additional information as is reasonably required by the town to demonstrate compliance with the applicable conditional use permit and associated site plan and the provisions of this article.

If, in the judgment of the town, the activities proposed by the amendment require an inspection, an inspection fee in the amount set in the town’s fee schedule shall be charged. In such event, the operator must pay such inspection fee before the amended well permit will be processed further.

Transfer of well permits.

A well permit may be transferred upon written request by the operator with the consent of the town upon compliance with the following conditions:

If the transferee agrees to be bound by the terms and conditions of the current well permit.

If all information previously provided to the town as part of the current well permit application is updated to reflect any changes.

If the transferee provides the insurance and security required by this article and otherwise complies with all applicable governmental ordinances and regulations.

The insurance and security provided by the transferor shall be released if consent of the town to such transfer, provided, however, that the transfer shall not relieve the transferor from any liability to the town arising out of any activities conducted prior to the transfer, and the town may retain all or a portion of any insurance and security if the town determines that any facts exist which would create the likelihood of liability secured by such insurance or security for such prior activities.

Phasing of drilling and production and well permit provisions.

Unless specified differently in the ordinance approving the conditional use permit (CUP), all drilling, and production activities shall conform to the following schedule:

Drilling.

Drilling shall commence no later than one year after the approval date of the well permit allowing the well. If no drilling has occurred within one year, the CUP shall automatically expire.

Once drilling has begun, the operator shall have five (5) years from the approval date of the CUP allowing the gas well operator to drill all wells. No additional drilling may occur after this point without the approval of the town council.

Hydraulic fracturing.

All hydraulic fracturing shall be completed within five (5) years from the approval date of the CUP allowing the well. No additional hydraulic fracturing may occur after this point without the approval of the town council.

Production.

If the provisions of subsections A and B above are met, the well operator shall have five (5) years from the approval date of the CUP allowing the well to begin well production. If no well production has begun within five years, the CUP shall automatically expire and the operator shall be subject to abandonment provisions of this article.

Any CUP authorized under this article shall only be granted to the person named on the original application and may not be transferred to any other person without the approval of the town council. Town council approval shall be required for any change in ownership of an entity named on the CUP application for any CUP granted under this article.

Abandonment of wells and pipelines.

Within sixty (60) days after abandonment of a well or drill site, the operator shall plug the well in accordance with railroad commission standards, clean the site, clear it of all material and equipment, fill all holes and excavations, and grade the land and return it to its original condition including replanting of vegetation to match the surrounding area. The operator shall cut and remove all well casings to a depth of at least ten feet below the surface. Additionally, the operator shall mark the exact location of plugged and abandoned wells with a steel marker not less than four inches in diameter set in cement and extending at least four feet above mean ground level. The operator shall weld, stamp or otherwise permanently engrave the operator’s name, lease name, and well number and location, into the marker’s metal. A plugged and abandonment marker may not be removed without the approval of the town council.

Structures may be built no closer to an abandoned well than is permitted pursuant to state law, including but not limited to the applicable rules and regulations of the railroad commission.

Within sixty (60) days after abandonment of a pipeline, the pipeline operator shall purge and plug the line in accordance with the rules and regulations of each governmental agency with jurisdiction over the activity, including but not limited to the railroad commission, environmental protection agency and the Texas Commission on Environmental Quality.

Abandonment of a drill site must be approved by the town and approval requires completion of the following by the operator:

The derrick and all appurtenant equipment thereto shall be removed from the drill site.

All equipment, materials and other surface installations shall be removed from the drill site.

All concrete foundations, piping, wood, guy anchors, and other foreign materials regardless of depth, except surface casing, shall be removed from the site.

All holes and depressions shall be filled with clean, compactable soil.

All waste, refuse or waste material shall be removed from the drill site.

All other requirements of this article have been met, including but not limited to restoration of the drill site.

The operator shall request a final inspection of a well intended to be abandoned and furnish the following information to the inspector:

A copy of the W-3A “notice of intention to plug and abandon” and “W-3 plugging record” forms on the same date these forms are submitted to the railroad commission.

A notice of intention to abandon under the provisions of this section and stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated and shall take no longer than 45 days once commenced.

All abandoned wells or drill sites shall meet the most current abandonment requirements of the railroad commission and this article prior to the issuance of any building permit for development of the property.

The director of planning shall indicate the location of each plugged and abandoned well on the town’s land use map.

§ 14.04.039 Inspection and enforcement requirements.

Abandonment of a drill site shall cause a drill site conditional use permit issued under this article to expire. Abandonment of a well shall cause a well permit issued under this article to expire.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

Oil and gas inspector.

The town engineer shall designate the inspector(s) who shall enforce the provisions of this article. The inspector shall have the authority to issue any orders or directives required to carry out the intent and purpose of this article and its particular provisions. Failure of any person to comply with any such lawful order or directive shall constitute a violation of this article.

The inspector and fire inspector shall have the authority to enter and inspect any premises covered by the provisions of this article to determine compliance with the provisions of this article and all applicable laws, rules, regulations, standards or directives of the state. Failure of any person to permit lawful access to the inspector or fire inspector shall constitute a violation of this article.

The inspector shall conduct annual inspections of all permitted wells in the town to determine compliance with this article and all regulations of the railroad commission.

The inspector and/or town engineer shall have the authority to request and receive any records, including any records sent to the railroad commission, logs and reports relating to the status or condition of any permitted well related to the health, safety, and operations of the well. Failure of any person to provide any such requested material shall be a violation of this article.

Technical advisor.

The town may from time to time employ a third-party technical advisor or engineer who is experienced and educated in the oil and gas industry or the law as it pertains to oil and gas matters. The function of such advisor(s) shall be:

To advise, counsel, or represent the town on such matters relating to oil and gas operations within the town as the town may want or require and the effect thereof, both present and future, on the health, welfare, comfort, and safety of the citizens of the town. Any fees associated with the employment of the technical advisor shall be borne by the operator.

Permit fees and escrow requirements.

As a condition to the issuance of the gas or oil well permit, payment of the applicable permit fee shall be paid in full. Said permit fee shall be in accordance with the schedule of fees contained in appendix A of this Code of Ordinances.

If the application for a well permit is approved, prior to a permit being issued, the operator shall deposit with the town the sum of $50,000.00 for each drill site containing a well permit application approved. The funds shall be maintained by the town in an interest-bearing escrow account from which the town may reimburse itself for the actual administrative expenses, consulting fees, contracting fees or the funding of inspector position(s). All interest earned shall be credited to the fund balance or refunded to the operator if and when the minimum balance is achieved. The town shall invoice and notify the operator, in writing of any deduction from the application fund and within 15 days of receipt thereof, the operator shall pay to the town for deposit into the fund the amount necessary to return the balance to $50,000.00. If the operator fails to maintain the fund as required by this section, such failure shall constitute a violation of this article, and the town may suspend or revoke the well permit and the town may pursue all remedies provided in this article for such violation. Upon completion of all drilling activities, final inspection and approval by the town of a restored site, and fulfillment by the operator of all of operator’s obligations under this article, the town shall return any remaining account balance to the operator or the operator’s approved assign.

Remedies of the town.

If an operator or the operator’s officers, employees, agents, contractors, subcontractors, or representatives fails to comply with the conditions of the applicable conditional use permit and associated site plan or any requirement of a well permit (including any requirement incorporated by reference as part of the permit), or any applicable provisions of this article or any other town regulations, the town shall endeavor to give written notice to the operator specifying the nature of the alleged failure and giving the operator a specified time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community; provided, however, that if circumstances warrant proceeding without notice, no notice will be sent. In any case, failure to give such notice shall not prohibit the town from pursuing any available remedy.

If the operator does not cure the alleged failure within the time specified by the town, the town may notify the railroad commission and request that the railroad commission take appropriate action. In addition, the town may pursue all other remedies allowed by law, including but not limited to any or all of the following:

The town may suspend the well permit until the alleged failure is cured.

The town may revoke the well permit if the operator fails to initiate and diligently pursue a cure.

The town may seek recourse against the security required by provisions of this division.

A criminal citation may be issued for violation of the conditional use permit, this article or any other town regulation.

Enforcement, right of entry.

The administrator, fire inspector, and the inspector are authorized and directed to enforce this article, the terms and conditions of any approved conditional use permit and the provisions of any well permit. Whenever necessary to enforce the foregoing, or whenever there is reasonable cause to believe there has been a violation of any of the foregoing, administrator, fire inspector and/or the inspector may enter upon any property covered by this article at any reasonable time to inspect or perform any duty or requirement imposed by this article. If entry is refused, the town shall have recourse to pursue every remedy provided by law and equity to gain entry.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

§ 14.04.040 Insurance requirements.

The operator shall provide the insurance described below for each well for which a well permit is issued, and shall maintain such insurance until the well is abandoned and the site restored. The operator must provide to the town sufficient documentation that the operator’s insurance complies with the minimum requirements and coverage amounts of this section before the well permit may be issued.

Each permit issued by the town under this article shall include the following language and regardless of whether such language is actually included in the permit, it shall be deemed to be included therein and binding on the operator as a condition of the permit:

“OPERATOR DOES HEREBY EXPRESSLY AND IRREVOCABLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS, ACTIONS, JUDGMENTS AND EXECUTIONS OF ANY AND ALL KINDS WHICH IT OR ITS SUCCESSORS OR ASSIGNS EVER HAD, OR NOW HAS OR MAY HAVE, OR CLAIMS TO HAVE, AGAINST THE TOWN OF FAIRVIEW, TEXAS, ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES, SPONSORS OR VOLUNTEERS, THE INSPECTOR, AND EACH OF THEIR RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS (THE TOWN OF FAIRVIEW, TEXAS AND ALL OTHER FOREGOING PARTIES BEING HEREIN REFERRED TO COLLECTIVELY AS THE “INDEMNIFIED PARTIES”) CREATED BY OR ARISING OUT OF PERSONAL INJURIES, KNOWN OR UNKNOWN, OR INJURIES TO PROPERTY, REAL OR PERSONAL, OR IN ANY WAY INCIDENTAL TO OR IN CONNECTION WITH THE PERFORMANCE OF THE WORK PERFORMED BY THE OPERATOR UNDER A WELL PERMIT. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST EACH AND EVERY CLAIM, DEMAND OR CAUSE OF ACTION AND ANY AND ALL LIABILITY, DAMAGES, OBLIGATIONS, JUDGMENTS, LOSSES, FINES, PENALTIES, COSTS, FEES AND EXPENSES INCURRED BY THE INDEMNIFIED PARTIES CAUSED BY OR ARISING OUT OF, INCIDENTAL TO, OR OTHERWISE IN CONNECTION WITH ANY WORK PERFORMED BY OPERATOR UNDER A WELL PERMIT, INCLUDING WITHOUT LIMITATION, PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH MAY BE MADE OR ASSERTED BY OPERATOR OR OPERATOR’S AGENTS, ASSIGNS OR ANY THIRD PARTIES. OPERATOR AGREES TO FULLY DEFEND, PROTECT, INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY CLAIMS, LIABILITIES OR DAMAGES SUFFERED AS A RESULT OF CLAIMS, DEMANDS, COSTS OR JUDGMENTS AGAINST THE INDEMNIFIED\PARTIES, CREATED BY OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE TOWN OF FAIRVIEW OR ANY OF THE OTHER INDEMNIFIED PARTIES, OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE OIL AND GAS WELLS, INCLUDING, BUT NOT LIMITED TO CLAIMS, LIABILITIES, AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, INCLUDING THE SOLE NEGLIGENCE OF ANY INDEMNIFIED PARTY, OCCURRING IN THE COURSE AND SCOPE OF PERMITTING OR INSPECTING THE WELLS, DRILL SITES, PIPELINES, AND OTHER AREAS INVOLVED IN OPERATOR’S ACTIVITIES. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE TOWN OF FAIRVIEW, TEXAS AND THE OTHER INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, WHETHER THAT NEGLIGENCE IS THE SOLE OR A CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH AND/OR DAMAGE. THE FOREGOING IS NOT INTENDED TO REQUIRE THE OPERATOR TO INDEMNIFY THE INDEMNIFIED PARTIES FROM THE INDEMNIFIED PARTIES’ GROSS NEGLIGENCE OR INTENTIONAL HARM, IRRESPECTIVE OF WHETHER THAT GROSS NEGLIGENCE OR INTENTIONAL HARM IS THE SOLE OR A CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH AND/OR DAMAGE.”

General provisions regarding insurance.

All policies shall be endorsed to read substantially as follows: “This policy will not be canceled or nonrenewed without 30 days advanced written notice to the owner and the Town of Fairview, Texas, except when this policy is being cancelled for nonpayment of premium, in which case ten days advance written notice to both such parties is required.”

Liability policies shall be written by carriers licensed to do business in the state and with companies with at least an “A” rating issued by the A.M. Best Company.

Liability policies shall name as “additional insured” the town and the other indemnified parties as defined in this article. Waivers of subrogation shall be provided in favor of all indemnified parties.

The operator shall present to the town copies of the pertinent portion of the insurance policies evidencing all coverage and endorsements required by this section before the issuance of the well permit.

Claims-made policies shall not be accepted except for excess policies and environmental impairment (or seepage and pollution) policies.

Required insurance coverage.

Commercial or comprehensive general liability insurance.

Bodily injury and property damage coverage shall be a minimum combined single limit of $25,000,000.00 per occurrence with an annual general aggregate coverage of $50,000,000.00. This coverage must include premises, operations, blowout, or explosion, products, completed operations, blanket contractual liability, underground property damage, underground reservoir (or resources) damage, broad form property damage, independent contractor’s protective liability, and personal injury.

Underground reservoir (or resources) damage coverage shall be on an occurrence basis, shall not be limited to sudden and accidental occurrences, shall not have a discovery or reporting limitation and shall not exclude damage to water tables, formation, or strata.

Environmental impairment (or seepage and pollution) coverage shall be either included in the comprehensive general liability coverage or as separate coverage. Such coverage shall not exclude damage to the lease site. If environmental impairment (or seepage and pollution) coverage as written on a “claims-made” basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, oil and gas, waste material, or other irritants, contaminants, or pollutants. Such policy shall provide for a minimum combined single limit coverage of $75,000,000.00 per occurrence. A discovery period for such peril shall not be less than ten years after the occurrence.

Automobile liability insurance.

Minimum combined single limit of $20,000,000.00 per occurrence for bodily injury and property damage. Such coverage shall include owned, nonowned and hired vehicles.

Worker’s compensation insurance.

In addition to the minimum statutory requirements, coverage shall include employer’s liability limits of at least $1,000,000.00 for each accident, $1,000,000.00 for each employee, and $1,000,000.00 for occupational disease, and the insurer shall agree to waive rights of subrogation against the town, its departments, agents, officers, servants, employees, sponsors, and volunteers, the inspector, and each of their respective heirs, personal representatives, successors and assigns, for any work performed for the town by the operator.

Excess (or umbrella) liability insurance.

Minimum limit of $50,000,000.00 providing excess coverage for each of the perils insured by the preceding liability insurance policies.

Control of well insurance.

Minimum limit of $10,000,000.00 per occurrence, with a maximum deductible of $250,000.00 per occurrence.

Policy shall cover the cost of controlling a well that is out of control, redrilling or restoration expenses, and seepage and pollution damage. Damage to property in the operator’s care, custody and control with a sub-limit of $500,000.00 may be added.

Security.

The operator shall file with the town a cash bond in the amount of $200,000.00 covering each pad site before the issuance of the well permit for the well.

As to each well, the cash bond shall secure the obligations of the operator to:

Comply with the road repair agreement and the insurance provisions set forth in this article.

Pay fines and penalties imposed upon the operator by the town for any breach of the well permit, this article, or the zoning ordinance if the operator fails to pay such fines or penalties within 15 days of the assessment of such fines or penalties.

Comply with the conditions of the applicable conditional use permit.

§ 14.04.041 Seismic survey permit requirements.

Comply with the performance obligations of this article including but not limited to the screening requirements.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

A separate seismic survey permit shall be required for all seismic surveys. The operator conducting the seismic survey shall complete and submit a seismic survey application to the town containing, at a minimum, the following information:

Operator name, phone number, facsimile transmission number, address, and email address.

If the operator is a corporation or other noncorporeal entity, the state of incorporation or organization; or if the operator is a partnership, the names and addresses of the general partners.

Location of seismic survey.

Date and time the seismic survey will be conducted.

Detailed explanation of the seismic survey method to be used on site.

Date and time the seismic survey will be completed.

Identification of all staging areas.

Evidence or documentation that the activity will adhere to the requirements of town regulations related to tree protection.

Under no circumstances may explosive charges, including but not limited to the use of dynamite, be used to conduct a seismic survey. In addition, the seismic survey activity shall be conducted in accordance with all applicable town regulations.

A fee in the amount set in the town’s fee schedule must accompany each seismic survey permit application.

No seismic activity shall be permitted on town-owned fee property without the express consent of, and pursuant to the conditions established by, the town council.

§ 14.04.042 No assumption of responsibility by town and no waiver of immunity.

No seismic activity shall be permitted within town owned rights-of-way or utility easements without first entering into a license agreement with the town, prepared by the town engineer.

(f)

Proof of insurance in the form of a standard commercial general liability insurance bond shall be required to conduct seismic survey(s) within the corporate limits of the town. This coverage must include premises, operation, products, completed operations, sudden or accidental pollution, blanket contractual liability, broad form property damage, independent contractors’ protective liability, and personal injury. This coverage shall be a minimum combined single limit of one million dollars ($1,000,000.00) per occurrence location for bodily injury and property damage.

(g)

A detailed map showing the locations of all vibration and geophone points.

(h)

A road repair agreement obligating the seismic operator to fund the repair of any damage caused by the operator to town infrastructure.

(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)

Nothing in division 1 or division 2 of this article shall be construed as an assumption by the town of any responsibility of an operator of a well not owned by the town, and no town officer, employee or agent shall have authority to relieve an operator from their responsibility under division 1 or division 2 of this article or by any other law or town regulation.